Corporate profits

It has been a bumper earnings season for America Inc. Second-quarter earnings per share for S&amp;P 500 companies are expected to be 25% higher than a year ago, boosted largely by a big corporate-tax cut. A healthy global economy has also helped—for those firms that break out revenue by country, 39% of sales are made outside America. But clouds loom. The direct impact of the tax cut will fade; turmoil in Turkey and concerns about tariffs have pushed up the value of the dollar, which may depress American multinationals’ overseas earnings. Profits in the oil industry, however, are likely to remain strong, reflecting the effect of production cuts on oil prices.

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